Feature class=esriFTSimple Fieldtype=esriGeometryPoint
Create esriGeometryPoint
Check geometry point type=esriGeometryPoint
about to create feature
at ESRI.ArcGIS.Geodatabase.IFeatureClass.CreateFeature()\r\n Shapes of this entity type not allowed in this layer

EDIT: I checked with logs and saw that the feature class being used, is correct feature class too.

shp2sde - If you have an argis license, may I ask why are you creating the table using shp2sde? I know it is an ESRI command, but you will be facing much less pain if you did it with ArcObjects or GP. shp2sde does things at the arcsde level (instead of the GeoDatabase level) and I wouldn't be surprised if it was slightly messed up for your release.
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Ragi Yaser BurhumMar 20 '12 at 20:05

I have a limited Arc View license. So I can't administer my arcSDE database using ArcCatalog so I have to use command prompts. :S
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DexterMar 20 '12 at 20:15

AFAIK, you can still use ArcObjects to connect to an enterprise GDB even with ArcView. It will not do a license check to block you from doing that.
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Ragi Yaser BurhumMar 21 '12 at 0:07

Yes I am connecting with ArcObject Geodatabase API to a database. Everything initializes. It's just the "CreateFeature" that's broken. Something must be wrong with my shapefile, I use a spreadsheet to create it and make an X,Y table. (Yes I don't include Ms/Zs).
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DexterMar 21 '12 at 14:35